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Business News of Sunday, 11 May 2003

Source: Associated Press

Trade mission to Ghana attracts 24 companies

NEWARK, N.J. - This month's state trade mission to Ghana and South Africa represents the first time John M. Bonforte Sr. and many of the two dozen New Jersey business leaders on the trip have visited Africa. But they do not expect much time for sightseeing.

Instead, they will be shuttling between meetings with businesses and agencies in those nations to lay groundwork for possible sales and imports.

Bonforte, president of Monmouth Rubber & Plastics Corp., of Long Branch, already ships products to Canada and Europe, but needed contacts in Africa.

"So to go forward, we have to press the flesh. That's why this mission works out for us," said Bonforte, whose 48-employee company produces closed-cell sponge rubber and plastic foam for industrial use.

He expects to have at least 10 meetings during the trip, which runs from May 10-22. Participants will visit Accra, the capital of Ghana, and Johannesburg and Cape Town in South Africa.

Businesses are paying $6,000 for each person they send, a fee that Bonforte considers more cost-effective than doing it himself in nations where he is a newcomer.

Because of those fees, no tax money is being used, said William D. Watley, secretary of the New Jersey Commerce & Economic Growth Commission, who is among seven commission members making the trip.

The trip is the first official state mission to Ghana and South Africa, which Watley characterized as business-friendly nations overdue for a visit.

"While this is groundbreaking for us, we are late to the game, because some European countries and other states have been there," Watley said. "We felt that these two stable countries would be significant matches for New Jersey."

Ghana, a nation of 20 million, could be a good market for New Jersey products and expertise in construction, telecommunications, automotive electronics, mining equipment, food processing, information technology and education, the commerce commission said.

The agency said South Africa, which has 45 million people, is a potential market for e-commerce and Internet services, medical and pharmaceutical products, security equipment, and chemicals, as well as environmental and pollution-control services and devices.

Watley said he expects to do some touring, saying it was important to see more than airports and roads. "But the goal is not vacation. If I wanted to go on vacation, I wouldn't go with 25 businesses," he said.

South Africa presents many opportunities for U.S. companies, now that it is not hampered by sanctions imposed during its apartheid era, said Rakesh Sambharya, a professor of management and international business at Rutgers-Camden.

"It's a highly developed country in many ways. The infrastructure is very good," said Sambharya, who visited the country in March for research. "They have a lot to offer to the world, and they can buy a lot."

He said he did not know enough about Ghana to discuss its potential.

A mix of large and small companies are on the trade mission, including giants such as Public Service Electric and Gas Co., the state's largest utility, and Verizon Communications Inc., the country's largest phone company and the dominant provider in New Jersey.

PSE&G is sending Shirley Ward, of its external affairs department, to identify African companies interested in establishing or expanding their business in New Jersey, spokesman Karen Johnson said.

"We always support the state's economic development efforts, because if New Jersey's economy grows, that's good for us," Johnson said.

Also on the trip are representatives of the Port Authority of New York and New Jersey, which operates the busy container terminals in Elizabeth and Newark, and the South Jersey Port Corp., whose two Delaware River terminals in Camden already handle tons of bulk goods like wood and steel from Africa.

The state has organized several other trade missions since Gov. James E. McGreevey took office. None, however, garnered the attention of the first, in which the governor led a group of business leaders to Ireland in 2002.

Republican lawmakers criticized the $70,000 it cost taxpayers for McGreevey, his wife and about 10 state employees to take the trip, which included a family reunion he held at a steakhouse.

McGreevey apologized, and the Democratic State Committee agreed to reimburse the state.

Watley led a second trade mission, to Bulgaria and Greece, which the commission said may bear some fruit: Educational Testing Service of Princeton is having discussions with the Greece Olympic Committee and several other telecommunications and information technology firms are in talks with the major Greek telephone service provider.

In addition, the commission said it got results from its participation in the U.S.-China Business Promotion and Matchmaking Conference in China in August. While there, letters of intent were signed with Cohen International, a New Jersey consulting firm, and EverWith Inc., a recruiting service.

In the fall, the commission led a delegation to an oil industry gathering in Brazil to promote New Jersey companies, and a letter of intent may be signed as a result.